Dragon Company provided the following data for the current year: Cash sales 2,500,000 Sales on account 850,000 Cash purchases 1,700,000 Credit purchases 400,000 Expenses paid 750,000 Accounts receivable - January 1 250,000 Accounts receivable - December 31 300,000 Accounts payable - January 1 150,000 Accounts payable - December 31 200,000 Inventory - January 1 500,000 Inventory - December 31 600,000 Accrued expenses - December 31 20,000 Prepaid expenses - December 31 30,000 Equipment - December 31 1,000,000 Interest received 40,000 Interest receivable - January 1 10,000 Interest receivable - December 31 20,000 On July 1 of the current year, an equipment was acquired for P200,000. The terms are P50,000 down and the balance to be paid after one year. The useful life of equipment is 10 years with no residual value